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Introduction to Information Technology 
Turban, Rainer and Potter 
John Wiley & Sons, Inc. 
Copyright 2005 
Chapter 2
Information Technologies: 
Concepts and Management 
Chapter 2 2
Chapter Outline 
 Information System: Concepts and Definition 
 Evolution of Information System 
 Classification of Information Systems 
 Examples of Information Systems 
 The Modern Computing Environment 
 Web-based Systems 
 Emerging Computing Environments 
 Managing Information Resources 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 3
Learning Objectives 
Differentiate between information technology infrastructure and 
information technology architecture . 
Describe the components of computer- based information systems. 
Describe various information systems and their evolution. 
Compare mainframe- based legacy systems, C/S systems and 
peer-to-peer 
Identify the major internal support system for each organization 
level 
Describe the major types of web- based information systems and 
understand their functions. 
Describe the emerging computing environments. 
Describe how information resources are managed and the roles of 
the information systems department and the end users. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 4
2.1 Information Systems: Concepts and 
Definitions 
 Information technology architecture: A high-level 
map or plan of the information assets in 
an organization, which guides current 
operations and is a blueprint for future 
directions. 
 In preparing the IT architecture, the designer 
needs similar information, which can be 
divided into two part: 
 The business needs for information 
 The existing and planned IT infrastructure and 
applications of the organization. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 5
The IT architecture of an e-business 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 6
Information Technology Infrastructure 
 The physical facilities, IT components, IT services, 
and IT management that support an entire 
organization. 
 IT components are the computer hardware, software 
and communications technologies that are used by IT 
personnel to produce IT services. 
 IT services include data management systems 
development , and security concerns . 
 IT infrastructure include these resources as well as 
their integration, operation, documentation, 
maintenance and management. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 7
Information Technology (IT) 
 Broadly , an organization’s collection of 
information resources, their users, and the 
management that oversees them; includes 
the IT infrastructure and all other information 
systems in an organization. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 8
Computer- Based Information Systems 
 Information System (IS): A Process that 
collects, processes, stores, analyzes, and 
disseminates information for a specific 
purpose. 
 Computer Based information system (CBIS): 
an information system that uses computer 
technology to perform some or all of its 
intended tasks. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 9
Application Program 
 A computer program designed to support a 
specific task, a business process , or another 
application program. 
 The collection of application programs in a 
single department is usually considered a 
departmental information system. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 10
Data, Information, and Knowledge 
 Data items. An elementary description of things, 
events, activities, and transactions that are recorded , 
classified, and stored, but are not organized to 
convey any specific meaning. 
 Information. Data that have been organized to that 
they have meaning and value to the recipient. 
 Knowledge. Data and/ or information that have been 
organized and processed to convey understanding, 
experience, accumulated learning, and expertise as 
apply to a current problem or activity. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 11
2.2 Evolution of Information System 
 The first business application of 
computers( in the mid- 1950s) performed 
repetitive. High-volume, transaction – 
computing tasks. The computers” crunched 
numbers” summarizing and organizing 
transactions and data in the accounting, 
finance, and human resources areas. Such 
systems are generally called transaction 
processing systems (TPSs) 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 12
Evolution of IS cont… 
 Management Information Systems (MISs): 
these systems access, organize, summarize 
and display information for supporting routine 
decision making in the functional areas. 
 Office Automation Systems( OASs): such as 
word processing systems were developed to 
support office and clerical workers. 
 Decision Support Systems: were developed 
to provide computer based support for 
complex, nonroutine decision. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 13
Evolution of IS cont… 
 End- user computing: The use or 
development of information systems by the 
principal users of the systems’ outputs, such 
as analysts, managers, and other 
professionals. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 14
Evolution of IS cont… 
 Intelligent Support System (ISSs): Include 
expert systems which provide the stored 
knowledge of experts to nonexperts, and a 
new type of intelligent systems with machine-learning 
capabilities that can learn from 
historical cases. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 15
Evolution of IS cont… 
 Knowledge Management Systems: Support 
the creating, gathering, organizing, 
integrating and disseminating of an 
organization knowledge. 
 Data Warehousing: A data warehouse is a 
database designed to support DSS, ESS and 
other analytical and end-user activities. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 16
Evolution of IS cont… 
 Mobile Computing: Information systems that 
support employee who are working with 
customers or business partners outside the 
physical boundaries of their companies; can 
be done over wire line or wireless networks. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 17
2.3 Classification of Information Systems 
The two most common classifications are: 
 Classification by breath of support 
 classification by organizational level . 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 18
Classification by Breath of Support 
Typical information systems that follow the hierarchical 
organization structure are functional ( departmental ) 
enterprisewide and interorganizational 
Functional information systems are organized around the 
traditional departments. 
Enterprise information systems serve several department or 
the entire enterprise. 
Interorganizational systems connect two or more 
organizations. 
An organization’s supply chain describe the flow of materials 
, information money and service from raw material suppliers 
through factories and warehouses to the end customers. 
IT provide two major types of software solution for managing 
supply chain activities . First enterprise resource planning 
( ERP), Second Supply Chain Management (SCM) 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 19
Departmental, corporate, and interorganizational IS 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 20
IT outside your organization 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 21
Classification by Organization Levels 
 The typical enterprise is organized 
hierarchically, from the clerical and office 
worker layer, to the operational layer, the 
managerial layer, the knowledge worker layer 
and finally the strategic layer. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 22
The Clerical Level 
 Clerical workers constitute a large class of 
employee who support managers at all levels 
of the company. Among clerical workers, 
those who use, manipulate, or disseminate 
information are referred to as data workers. 
These employee include bookkeepers, 
secretaries who work with word processors, 
electronic file clerks, and insurance claim 
processors. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 23
The Operational Level 
 Operational, or first- line managers deal with 
the day-to day operations of the organization, 
making routine decision, which deal in 
general with activities such as short- term 
planning, organizing, and control 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 24
The Knowledge-Work Level 
 They act as advisors and assistants to both 
top and middle management and are often 
subject-area experts. Many of these 
professional workers are classified as 
knowledge workers, people who create 
information and knowledge as part of their 
work and integrate it into the business. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 25
The Strategic Level 
 Top-level or strategic managers( the 
executive) make decision that deal with 
situation that may significantly change the 
manner in which business is done. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 26
2.5 Computing Environment 
Computing Environment: The way in which an 
organization’s information technologies 
( hardware, software, and communications 
technology) are organized and integrated for 
optimal efficiency and effectiveness. 
Legacy system: Older systems, typically 
those that process an organization’s high-volume 
transactions, that are central to the 
operations of a business. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 27
Distributed Computing 
 Computing architecture that divides the 
processing work between two or more 
computers, using a network for connection, 
also called distributed processing. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 28
Client / server architecture 
A type of distributed architecture that divides 
distributed computing units into two major 
categories, clients and servers, connected by 
a network . 
Client .A computer ( such as a PC attached to 
a network ) that is used to access shared 
network resources. 
Server. A computer that is attached to a 
client/server network and provides clients with 
variety of services. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 29
Client/Server Architecture cont… 
Enterprise wide computing. Computing 
environment in which each client/ server 
architecture is used throughout an 
organization. 
Peer- to – Peer (P2P). A distribute computing 
network in which each client/ server computer 
shares files or computer resources directory 
with others but not through a central service 
(as in traditional client/ server architecture). 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 30
2.6 Web-Based Systems 
Web based systems: Applications or service that are 
resident on a server that is accessible using a web 
browser and is therefore accessible from anywhere 
via the internet. 
Internet (“ the Net”): a world wide system of 
computer – a network of networks; a public, 
cooperative and self- sustaining facility accessible to 
hundreds of millions of people worldwide. 
Information Superhighway. A national fiber-optic-based 
network and wireless infrastructure that will 
connect all internet users in a country 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 31
World Wide Web 
 An application that uses the transport 
functions of the Internet; has universally 
accepted standards for storing, retrieving 
formatting, and displaying information via a 
client/server architecture 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 32
Intranet 
 A private network, usually within one 
enterprise that uses web technologies such 
as browsers and internet protocols separated 
from the Internet by a security gateway such 
as a firewall 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 33
Extranet 
 A secured network that connects several 
intranet via the Internet; allows two or more 
enterprise to communicate and collaborate in 
a controlled fashion . 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 34
Corporate portal 
 Web site that provide the gateway to 
corporate information from a single point of 
access. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 35
Web-Based E-Commerce Systems 
 Electronic Storefront: The web- equivalent of 
a showroom or a physical store through which 
an e-business can display and/or sell its 
products. 
 Electronic market: A network of interaction 
and relationships over which information, 
products service and payments are 
exchanged. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 36
Web-Based E-commerce cont… 
 Electronic exchange: A web based public electronic 
market in which many buyer and many sellers 
interact electronically . 
 Mobile commerce: The buying and selling of goods 
and services in a wireless environment. 
 Location based commerce: M–commerce transaction 
targeted to customers in specific locations at specific 
times. 
 Enterprise Web: An open environment for managing 
and delivering web application by combining service 
from different vendors in a technology layer that 
spans platform and business systems. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 37
2.7 Emerging Computing Environment 
 Utility computing: Unlimited computing power and 
storage capacity that, like electricity and water 
services, can be obtained on demand from virtual 
utilities around the globe. 
 Subscription computing: A type of utility computing 
that puts the pieces of a computing platform together 
as services, rather than as a collection of separately 
purchase component . 
 Grid computing: The use of networks to harness 
unused processing cycles of various computers in 
order to create powerful computing capabilities. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 38
Emerging Computing cont… 
 Pervasive computing: invisible, everywhere 
computing that is embedded in objects 
around us. 
 Web services: Universal, prefabricated 
business process software modules, 
delivered over the Internet that users can 
select and combine through almost any 
device enabling disparate system to share 
data and services. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 39
All rights reserved. Reproduction or translation of this 
work beyond that permitted in section 117 of the United 
States Copyright Act without express permission of the 
copyright owner is unlawful. Request for information 
should be addressed to the permission department, John 
Wiley & Sons, Inc. The purchaser may make back-up 
copies for his/her own use only and not for distribution or 
resale. The publisher assumes no responsibility for error, 
omissions, or damages caused by the use of these 
programs or from the use of the information herein. 
“ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 40

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Ch02

  • 1. Introduction to Information Technology Turban, Rainer and Potter John Wiley & Sons, Inc. Copyright 2005 Chapter 2
  • 2. Information Technologies: Concepts and Management Chapter 2 2
  • 3. Chapter Outline  Information System: Concepts and Definition  Evolution of Information System  Classification of Information Systems  Examples of Information Systems  The Modern Computing Environment  Web-based Systems  Emerging Computing Environments  Managing Information Resources “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 3
  • 4. Learning Objectives Differentiate between information technology infrastructure and information technology architecture . Describe the components of computer- based information systems. Describe various information systems and their evolution. Compare mainframe- based legacy systems, C/S systems and peer-to-peer Identify the major internal support system for each organization level Describe the major types of web- based information systems and understand their functions. Describe the emerging computing environments. Describe how information resources are managed and the roles of the information systems department and the end users. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 4
  • 5. 2.1 Information Systems: Concepts and Definitions  Information technology architecture: A high-level map or plan of the information assets in an organization, which guides current operations and is a blueprint for future directions.  In preparing the IT architecture, the designer needs similar information, which can be divided into two part:  The business needs for information  The existing and planned IT infrastructure and applications of the organization. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 5
  • 6. The IT architecture of an e-business “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 6
  • 7. Information Technology Infrastructure  The physical facilities, IT components, IT services, and IT management that support an entire organization.  IT components are the computer hardware, software and communications technologies that are used by IT personnel to produce IT services.  IT services include data management systems development , and security concerns .  IT infrastructure include these resources as well as their integration, operation, documentation, maintenance and management. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 7
  • 8. Information Technology (IT)  Broadly , an organization’s collection of information resources, their users, and the management that oversees them; includes the IT infrastructure and all other information systems in an organization. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 8
  • 9. Computer- Based Information Systems  Information System (IS): A Process that collects, processes, stores, analyzes, and disseminates information for a specific purpose.  Computer Based information system (CBIS): an information system that uses computer technology to perform some or all of its intended tasks. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 9
  • 10. Application Program  A computer program designed to support a specific task, a business process , or another application program.  The collection of application programs in a single department is usually considered a departmental information system. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 10
  • 11. Data, Information, and Knowledge  Data items. An elementary description of things, events, activities, and transactions that are recorded , classified, and stored, but are not organized to convey any specific meaning.  Information. Data that have been organized to that they have meaning and value to the recipient.  Knowledge. Data and/ or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise as apply to a current problem or activity. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 11
  • 12. 2.2 Evolution of Information System  The first business application of computers( in the mid- 1950s) performed repetitive. High-volume, transaction – computing tasks. The computers” crunched numbers” summarizing and organizing transactions and data in the accounting, finance, and human resources areas. Such systems are generally called transaction processing systems (TPSs) “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 12
  • 13. Evolution of IS cont…  Management Information Systems (MISs): these systems access, organize, summarize and display information for supporting routine decision making in the functional areas.  Office Automation Systems( OASs): such as word processing systems were developed to support office and clerical workers.  Decision Support Systems: were developed to provide computer based support for complex, nonroutine decision. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 13
  • 14. Evolution of IS cont…  End- user computing: The use or development of information systems by the principal users of the systems’ outputs, such as analysts, managers, and other professionals. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 14
  • 15. Evolution of IS cont…  Intelligent Support System (ISSs): Include expert systems which provide the stored knowledge of experts to nonexperts, and a new type of intelligent systems with machine-learning capabilities that can learn from historical cases. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 15
  • 16. Evolution of IS cont…  Knowledge Management Systems: Support the creating, gathering, organizing, integrating and disseminating of an organization knowledge.  Data Warehousing: A data warehouse is a database designed to support DSS, ESS and other analytical and end-user activities. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 16
  • 17. Evolution of IS cont…  Mobile Computing: Information systems that support employee who are working with customers or business partners outside the physical boundaries of their companies; can be done over wire line or wireless networks. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 17
  • 18. 2.3 Classification of Information Systems The two most common classifications are:  Classification by breath of support  classification by organizational level . “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 18
  • 19. Classification by Breath of Support Typical information systems that follow the hierarchical organization structure are functional ( departmental ) enterprisewide and interorganizational Functional information systems are organized around the traditional departments. Enterprise information systems serve several department or the entire enterprise. Interorganizational systems connect two or more organizations. An organization’s supply chain describe the flow of materials , information money and service from raw material suppliers through factories and warehouses to the end customers. IT provide two major types of software solution for managing supply chain activities . First enterprise resource planning ( ERP), Second Supply Chain Management (SCM) “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 19
  • 20. Departmental, corporate, and interorganizational IS “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 20
  • 21. IT outside your organization “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 21
  • 22. Classification by Organization Levels  The typical enterprise is organized hierarchically, from the clerical and office worker layer, to the operational layer, the managerial layer, the knowledge worker layer and finally the strategic layer. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 22
  • 23. The Clerical Level  Clerical workers constitute a large class of employee who support managers at all levels of the company. Among clerical workers, those who use, manipulate, or disseminate information are referred to as data workers. These employee include bookkeepers, secretaries who work with word processors, electronic file clerks, and insurance claim processors. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 23
  • 24. The Operational Level  Operational, or first- line managers deal with the day-to day operations of the organization, making routine decision, which deal in general with activities such as short- term planning, organizing, and control “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 24
  • 25. The Knowledge-Work Level  They act as advisors and assistants to both top and middle management and are often subject-area experts. Many of these professional workers are classified as knowledge workers, people who create information and knowledge as part of their work and integrate it into the business. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 25
  • 26. The Strategic Level  Top-level or strategic managers( the executive) make decision that deal with situation that may significantly change the manner in which business is done. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 26
  • 27. 2.5 Computing Environment Computing Environment: The way in which an organization’s information technologies ( hardware, software, and communications technology) are organized and integrated for optimal efficiency and effectiveness. Legacy system: Older systems, typically those that process an organization’s high-volume transactions, that are central to the operations of a business. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 27
  • 28. Distributed Computing  Computing architecture that divides the processing work between two or more computers, using a network for connection, also called distributed processing. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 28
  • 29. Client / server architecture A type of distributed architecture that divides distributed computing units into two major categories, clients and servers, connected by a network . Client .A computer ( such as a PC attached to a network ) that is used to access shared network resources. Server. A computer that is attached to a client/server network and provides clients with variety of services. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 29
  • 30. Client/Server Architecture cont… Enterprise wide computing. Computing environment in which each client/ server architecture is used throughout an organization. Peer- to – Peer (P2P). A distribute computing network in which each client/ server computer shares files or computer resources directory with others but not through a central service (as in traditional client/ server architecture). “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 30
  • 31. 2.6 Web-Based Systems Web based systems: Applications or service that are resident on a server that is accessible using a web browser and is therefore accessible from anywhere via the internet. Internet (“ the Net”): a world wide system of computer – a network of networks; a public, cooperative and self- sustaining facility accessible to hundreds of millions of people worldwide. Information Superhighway. A national fiber-optic-based network and wireless infrastructure that will connect all internet users in a country “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 31
  • 32. World Wide Web  An application that uses the transport functions of the Internet; has universally accepted standards for storing, retrieving formatting, and displaying information via a client/server architecture “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 32
  • 33. Intranet  A private network, usually within one enterprise that uses web technologies such as browsers and internet protocols separated from the Internet by a security gateway such as a firewall “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 33
  • 34. Extranet  A secured network that connects several intranet via the Internet; allows two or more enterprise to communicate and collaborate in a controlled fashion . “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 34
  • 35. Corporate portal  Web site that provide the gateway to corporate information from a single point of access. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 35
  • 36. Web-Based E-Commerce Systems  Electronic Storefront: The web- equivalent of a showroom or a physical store through which an e-business can display and/or sell its products.  Electronic market: A network of interaction and relationships over which information, products service and payments are exchanged. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 36
  • 37. Web-Based E-commerce cont…  Electronic exchange: A web based public electronic market in which many buyer and many sellers interact electronically .  Mobile commerce: The buying and selling of goods and services in a wireless environment.  Location based commerce: M–commerce transaction targeted to customers in specific locations at specific times.  Enterprise Web: An open environment for managing and delivering web application by combining service from different vendors in a technology layer that spans platform and business systems. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 37
  • 38. 2.7 Emerging Computing Environment  Utility computing: Unlimited computing power and storage capacity that, like electricity and water services, can be obtained on demand from virtual utilities around the globe.  Subscription computing: A type of utility computing that puts the pieces of a computing platform together as services, rather than as a collection of separately purchase component .  Grid computing: The use of networks to harness unused processing cycles of various computers in order to create powerful computing capabilities. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 38
  • 39. Emerging Computing cont…  Pervasive computing: invisible, everywhere computing that is embedded in objects around us.  Web services: Universal, prefabricated business process software modules, delivered over the Internet that users can select and combine through almost any device enabling disparate system to share data and services. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 39
  • 40. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the United States Copyright Act without express permission of the copyright owner is unlawful. Request for information should be addressed to the permission department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The publisher assumes no responsibility for error, omissions, or damages caused by the use of these programs or from the use of the information herein. “ Copyright 2005 John Wiley & Sons Inc.”Chapter 2 40